The analysis, which tracks year-over-year same-merchant prepaid card activations, redemptions and reloads, revealed an across-the-board increase in all three categories from April to June.
“We continued to see positive dollar volume growth of activations, redemptions and reloads throughout the second quarter,” said Silvio Tavares, the company’s senior vice-president and division manager of global information and analytics solutions. “While the economy’s effect on consumer spending has impacted gift cards, they remain a popular payment choice among consumers.”
After the first quarter redemption of holiday-based gift cards, volume growth slowed in April. However, an uptick was noted during May and June holidays such as Mother’s Day and Father’s Day. Gifts given to graduates of educational institutions also accounted for the rebound.
Furthermore, quick service restaurant, specialty retailer and casual dining cards in particular all saw marked growth during activations in May and June.Back To Blog